MYOB reckons rival accounting group is OK

ware – to contribute to underlying earnings immediately.

He says the purchase will not only open doors for the rollout of MYOB’s online accounting practice software to Reckon’s clients but also broadens a small and mediumsized business customer base.

“Through this acquisition we will be able to accelerate the delivery of our online practice suite to bring advisers online faster and provide an online migration path for Reckon’s Accountant Group clients to the MYOB platform,” Mr Reed said.

“It will deepen our relationship with more than 3000 accounting practices – the most trusted advisers to SMEs and people who we know play an integral role in the business lives of SMEs”.

MYOB plans to reinvest the first two years’ earnings from the Reckon assets in sales and marketing.

Reckon chief Clive Rabie said the sale was in the best interests of both shareholders and Accountant Group clients.

“We believe that combining two businesses, that are strategically and culturally aligned, under the MYOB group presents a compelling opportunity for our clients and investors,” Mr Rabie said.

The sale requires approval from competition regulators and will be funded by a committed debt facility.